Eco Buildings, the UK modular housing firm, has landed a seven-year deal with the Chilean government to supply 20,000 homes under its government social housing scheme.
This is the deal investors will have been waiting for.
The landmark contract is worth €420 million and is the biggest validation of the firm’s modular homes concept to date. It will also generate significant revenues for the firm that still only has a market cap of £25m, even after a 75% rally on Tuesday.
The AIM-listed company will deliver homes starting with an initial tranche of 607 houses in 2026, scaling up to 5,000 homes annually by year seven.
The deal follows a two-year certification process and successful demonstration projects in Melipilla and Valparaíso, which were inspected by senior government officials and parliamentarians.
Under Chile’s structured framework, Eco will receive 50% deposits at the start of each housing lot, with the balance paid upon delivery and verification. This provides predictable cash flow and minimal working capital risk throughout the programme.
The Chilean government will pay a €12.75 million deposit for 50% of the first tranche of 607 homes.
To meet demand, Eco will install a new automated manufacturing line in Chile during Q2 2026, utilising its glass fibre reinforced gypsum (GFRG) panel technology.
The company plans to replicate the model across the region.
“Securing our first project in Latin America represents an important milestone for Eco Buildings and demonstrates the scalability of our revolutionary technology across new markets. Chile provides a strong regulatory framework and a strategic entry point into the wider region,” said Dr Etrur Albani, Executive Vice-Chairman of Eco Buildings.
“Our focus is on delivering high-quality, sustainable and affordable housing through an efficient, industrialised approach. We believe our technology can support governments and developers in accelerating housing delivery across Latin America in a cost-effective and environmentally responsible way.”